AT&T's delayed cellphone TV service starts Sunday

AT&T, formerly known as Michigan Bell and a bunch of other things, is planning to launch its new cellphone video service Sunday. The service will be available in 58 markets, including Atlanta, Chicago, Los Angeles and New York. AT&T will charge $15 per month for 10 channels. Eight are shared with Verizon, and two are exclusive.

AT&T Mobile TV is similar to Verizon's V Cast Mobile TV, and is operated by the same company, Qualcomm. AT&T already has a mobile video service called CV, which is based on different technology. It works like Internet video, providing short clips on demand. Qualcomm's MediaFLO service is more like regular TV broadcasts, constantly streaming shows. Quality is said to much higher than on-demand cellphone clips.

The only AT&T phones that will initially work with the service are are going on sale Sunday: the LG Vu ($299.99) and the Samsung Access ($199.99). The prices apply with two-year contracts and are after $100 mail-in rebates. Other TV-capable phones will be available later.

The eight channels shared with Verizon Wireless are CBS Mobile, Comedy Central, ESPN Mobile TV, Fox Mobile, MTV, NBC 2Go, NBC News 2Go and Nickelodeon. The two exclusive channels are PIX, which screens movies from Sony Pictures, and CNN Mobile Live.

AT&T was initially planning to launch MediaFLO phones last year.

Verizon Wireless has been quiet about how many people subscribe to V Cast Mobile TV, which costs the same as AT&T's service. Some analysts are skeptical that consumers are eager to pay $15 per month to watch TV on small screens.

But Qualcomm is confident in MediaFLO's prospects, putting down $554.6 million in a government spectrum auction in March for the right to use old UHF channel 56 in the Boston, New York, Philadelphia, Los Angeles and San Francisco regions. That would allow it to broadcast several more MediaFLO channels in those areas. Meanwhile, TV stations are planning to introduce their own broadcasts for mobile phones and other gadgets. The first such broadcasts, and the gadgets that will be able to tune to them, could be available next year. Unlike MediaFLO, these broadcasts may not require a subscription. (info from The Associated Press)